Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A

image text in transcribed
image text in transcribed
In response to intensive foreign competition, the management of Florex Company has attempted over the past year to improve the quality of its products. A statistical process control system has been installed and other steps have been taken to decrease the amount of warranty and other field costs, which have been trending upward over the past several years, Costs relating to quality and quality control over the last two years are given below: Inspection Quality engineering Depreciation of test equipment Rowork labor Statistical process control Cost of field servicing Supplies used in testing Synten development Warranty repairs Net cost of BEAD Product testing Product recalls Disposal of detective products Costs in thousands Last This Year Year 765 51,584 $ 540 $ 675 $ 630 $ 225 $ 1,260 $ 1.620 3 0 $ 225 $ 1.710 $1,170 $ 45 $ 01 $ 630 $ 900 $ 4,140 $ 1,260 540 $1,530 5 900 $ 1,440 $ 2,700 $ 990 900 5 900 1 Sales have been flat over the past few years, at $90,000,000 per year. A great deal of money has been spent in the effort to upgrade quality, and management is anxious to see whether or not the effort has been effective. Required: 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (.e 0.1234 should be entered as 12.34).) 1. Prepare a quality cost report that contains data for both this year and last year. (Enter amount values in thousands. Round your percentage answers to 2 decimal places (ie 0.1234 should be entered as 12.34).) Florex Company Quality Cost Report Last Year Amount (in Percent of thousands) Salas This Year Amount (in Percent of thousands) Sales 02:31 Prevention costs: % . bok Total prevention costs Appraisal costs rences Total appraisal costs Internal failure costs: Total internal afure costs Extmal failure costs Total external flure costs Total quality cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Custom Edition For National American University

Authors: Charles T. Horngren, Walter T. Harrison Jr, M. Suzanne Oliver

9th Edition

1256297585, 978-1256297581

More Books

Students also viewed these Accounting questions

Question

Appreciate common obstacles to performance appraisals

Answered: 1 week ago

Question

Recognize traditional approaches to performance appraisals

Answered: 1 week ago